1. At the outset, you need to realise that ther eis no legally enforceable right to allow a borrower to downsize their house and force the lender to accept a smaller house as security for the loan instead. There is a legal right to transfer your mortgage to a different mortgage provider who might be willing to accept the new smaller house as security for the loan. But there is no mechanism in Irish law to force EBS to lend to you on the basis of a smaller house. In essence, they are entitled to have their loan repaid from the sale of your house. Then it would be up to you to obtain financing for the purchase of a new smaller house from whoever you could get funding from.